Louisiana Revised Statutes 40:2115.17 – Criteria for decision; attorney general
Terms Used In Louisiana Revised Statutes 40:2115.17
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Hospital: means any institution, place, building, or agency, public or private, whether for profit or not, with facilities for the diagnosis, treatment, or care of persons who are suffering from illness, injury, infirmity, or deformity or other physical condition for which obstetrical, medical, or surgical services would be available and appropriate and which operates or is affiliated with facilities for the overnight care, observation, or recovery of those persons. See Louisiana Revised Statutes 40:2102
A. The attorney general shall approve the application unless he finds that the acquisition is not in the public interest. An acquisition is not in the public interest unless appropriate steps have been taken to safeguard the value of charitable assets and ensure that any proceeds of the transaction are used for appropriate health care purposes as provided for in La. Rev. Stat. 40:2115.18.
B. In determining whether the acquisition meets such criteria under this Subpart, the attorney general shall consider:
(1) Whether the hospital‘s board of directors exercised due diligence in deciding to sell, selecting the purchaser, and negotiating the terms and conditions of the sale.
(2) The procedures used by the seller in making its decision, including whether appropriate expert assistance was used.
(3) Whether conflict of interest was disclosed, including but not limited to conflicts of interest related to board members of, executives of, and experts retained by the seller, purchaser, or parties to the acquisition.
(4) Whether the seller will receive fair value for its assets; provided that the attorney general may employ, at the seller’s expense, reasonably necessary expert assistance in making this determination.
(5) Whether funds are placed at unreasonable risk, if the acquisition is financed in part by the seller.
(6) Whether any management contract under the acquisition is for fair value.
(7) Whether the sale proceeds will be used for appropriate health care purposes consistent with the seller’s original purpose or for the support and promotion of health care in the affected community and whether the proceeds will be controlled as funds independently of the purchaser or parties to the acquisition.
(8) Whether any corporation established to hold the proceeds of the sale will be broadly based in the community and be representative of the affected community, taking into consideration the structure and governance of such corporation.
(9) Whether a right of first refusal to repurchase the assets by a successor corporation or foundation has been retained if the hospital is subsequently sold to, acquired by, or merged with another entity.
Acts 1997, No. 1371, §1, eff. Jan. 1, 1998.